Higher Scrap Price for New Cutting Grade in Japan

Ferrous scrap market price is divided into H2 grade and new cutting grade. The price gap increases at home and abroad. Hyundai Steel of South Korea increased the offer price by 1,000 yen to 42,500 yen per tonne for new cutting scrap last week while the firm left the offer unchanged for H2 grade. The price gap increased to largest level of 7,000 yen between H2 and new cutting grade. POSCO also offered C&F 45,200 yen per tonne for new cutting grade compared with 38,500 yen for H2. Electric furnace steel makers around Tokyo pay 35,000-36,000 yen per tonne for new cutting grade compared with recent peak of more than 40,000 yen in April. The makers pay 38,000-38,500 yen in Osaka and Tokyo Stele Manufacturing pay 39,000 yen at Okayama. The price increases in bay area of Tokyo and Nagoya and reaches FAS 39,000-39,500 yen in Tokyo and 40,000-45,000 yen in Nagoya due to firm demand for export. Scrap dealing source said Japanese integrated steel makers increase the purchase in July. The firm domestic demand could keep firm though the local electric furnaces plan maintenance outage in the summer.